WBMS: Primary Aluminum and Lead markets record deficit; Copper ends in small surplus

By Paul Ploumis (ScrapMonster Author)

June 21, 2016 01:00:18 AM

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first four months of the current year. The global primary aluminum and Lead markets recorded marginal deficit during Jan-Apr ’16. On the other hand, Copper market reported small surplus during the initial four-month period of the year.

Aluminum

The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminum market has recorded a marginal deficit during the initial four months of the year. As per the report, the market reported a deficit of 298,000 tons when matched with the deficit of 308,000 reported for the entire year 2015.

The production of primary aluminum has dropped by 61,000 tonnes during the four-month period from January to April this year. The total reported stock of metal dropped by 183,000 tonnes during the month of April. The stocks at the end of the initial four-month period stood at 3,470 kt, which is sufficient to meet 22 days demand. It must be noted that the stock levels at the end of 2015 had stood at 3,787 kt. The combined stocks held in London, Shanghai, USA and Tokyo exchanges totaled 2,984 kt at the end of April, down by 248 kt when matched with end-2015 levels.

Global production fell modestly by 1.1% during the period from January to April in 2016. China, with estimated production of 9,905 kt, accounted for more than 53% of the world production. Production in the EU-28 region rose by 2.7% and the output by NAFTA region fell by 7.7% year-on-year. The primary aluminum production for the month of April alone was 4,708.9 kt, whereas the consumption totaled 4,972.4 kt.

The Chinese net exports of aluminum semis totaled 1,190 kt during the first four months of the year, when compared with 1,326 kt during Jan-Apr ’15.

The WBMS report also states that the global aluminum demand increased by 61,000 tonnes during January to April this year to total 18.84 million tonnes, when compared with the corresponding period last year. The Chinese apparent demand was marginally higher by 0.2% when compared with 2015. Also, EU-28 demand dropped during January to April this year by 26 kt when compared with the previous year.

Copper

The global copper market has recorded a surplus of 26,000 tonnes during January to April this year. It must be noted that the worldwide copper market had reported a surplus of 404,000 tonnes for the entire year 2015.

The global mine production during the period from January to April this year totaled 6.47 million tonnes. The mine production has grown by 5.1% when matched with the corresponding four-month period in 2015. Meantime, global refined copper output jumped higher by 5.7% over the previous year to 7.81 million tonnes. Chinese refined copper output reported significant increase of 252,000 tonnes during this period. Also, refined copper production was up sharply by 48,000 tonnes in Chile during the four-month period.

The global copper demand during Jan-Apr ’16 stood at 7,784 kt, significantly higher when compared with 7,234 kt during the same period in 2015. The Chinese apparent consumption increased by 429,000 tonnes during this period to total 3.851 million tonnes. The Chinese demand accounted for nearly 50% of the global demand. Also, EU-28 apparent consumption increased sharply by 8.3% from Jan-Apr ’15 levels to 1.186 million tonnes.

According to the report, reported stocks of the metal stood higher by 178,000 tonnes during the initial four-month period of the year when compared with 2015 closing, despite falling during the month of April.

The refined copper output during the month of April this year alone was 1,969.90 kt, whereas consumption during the month totaled 2,079.50 kt.

Lead

The global lead market has recorded a surplus of 29,000 tonnes during January to April this year. It must be noted that the worldwide lead market had reported a deficit of 4.0 kt for the entire year 2015.

The global refined lead output during Jan-Apr ’16 increased marginally by 1.3% over the previous year to 3,369.5 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-Apr ‘16 has surged higher by 79kt. The Chinese apparent consumption in January to April 2016 totaled 1245 kt, which is marginally lower by 17 kt when matched with the corresponding four-month period in 2015. The Chinese apparent consumption represented nearly 37% of the global total. The apparent demand increased by 21 kt in the US.

The reported stocks of the metal at the end of April this year has dropped by 2.6 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of Apr ’16 alone totaled 856.0 kt, whereas the consumption totaled 861.7 kt.